Credit Cards Allows you to borrow funds to pay for goods and services.
Deducts money directly from your saving’s bank account or your current account.
It gives you access to money you otherwise do not have.
Your savings bank account or current account.Credit extended to you by your card issuer.
Can spend more than what you have.
You can only spend how much you have.
The credit card company pays the vendor for your purchase. You pay the credit card company.
You pay for your purchase.
You get a bill or statement each month with details of the transactions you have made.
There is no bill or statement
A bill needs to be paid each month since it is being borrowed.
There is no payment that needs to be made since you are using your own money.
Credit cards have multiple fees applicable. These include joining fees, annual fees, late payment fees, and bounced cheque fees among others.